Famous Bitcoin supporter and master investor Fred Krueger has put forward a theory revealing the reason behind the drop in Bitcoin.
On March 17, Fred Krueger made a statement on Twitter suggesting a theory that could explain the $8,000 drop in Bitcoin from $73,000.
The master investor claimed that a large fund was shorting the shares of the biggest corporate Bitcoin whale MicroStrategy while also buying Bitcoin. It is indicated that the fund was hoping for the Bitcoin price to rise while waiting for MicroStrategy shares to fall.
The transactions were worth one billion dollars each and were reportedly halted on Friday. Krueger stated that the fund had to sell the Bitcoins from both trades, causing downward pressure on the price.
Krueger also mentioned that the $1 billion Bitcoin sale triggered liquidations and small Bitcoin holders had been selling throughout the week.
According to CoinGecko, Bitcoin is currently trading at $66,920, with a 6.4% loss in the last week.
